The Class Representative alleges that the Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, which prohibit individuals and entities from making false and/or materially misleading statements in connection with the sale or purchase of a security. Specifically, the Class Representative alleges that between September 4, 2013 and October 13, 2015 (the “Class Period”), the Defendants made false and/or materially misleading statements regarding BofI’s internal controls, compliance infrastructure, and underwriting standards. The Defendants deny the allegations of wrongdoing asserted in this Action, and deny any liability whatsoever to any member of the Class.
Beginning on October 15, 2015, several plaintiffs filed initial complaints against BofI, Mr. Garrabrants, and Mr. Micheletti. On February 1, 2016, the Court consolidated these actions and appointed Houston Municipal Employees Pension System as Lead Plaintiff. On April 11, 2016, Lead Plaintiff filed an amended complaint against BofI, Mr. Garrabrants, Mr. Micheletti, Mr. Grinberg, Mr. Mosich, and Mr. Argalas. Lead Plaintiff filed the Third Amended Complaint on December 22, 2017; this is the operative complaint in this case.
On March 21, 2018, the Court granted the Defendants’ motion to dismiss this case. Lead Plaintiff appealed to the U.S. Court of Appeals for the Ninth Circuit, which, on October 8, 2020, reversed the dismissal order in part. On August 24, 2021, the Court entered an order certifying the class as set forth above and appointing Lead Plaintiff Houston Municipal Employees Pension System as Class Representative and Lieff Cabraser Heimann & Bernstein, LLP as Class Counsel.
The case is ongoing. You can get updated information on this website or by contacting Class Counsel.
Copies of the Court’s Orders referenced herein are available on the Important Documents page of this website.